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Waldorf Astoria Chicago going to Joe Mansueto at steep discount
Billionaire entrepreneur paying $54M for luxury hotel, a year after its lender seized control of 215-key tower at foreclosure
![Joe Mansueto and Waldorf Astoria Chicago at 11 E. Walton Street (Morningstar, Google Maps)](https://static.therealdeal.com/wp-content/uploads/2020/11/1200-Waldorf-Astoria-Chicago-going-to-Joe-Mansueto-at-steep-discount.jpg)
Billionaire entrepreneur Joe Mansueto is buying the Waldorf Astoria Chicago, a year after its lender seized control of the 215-key Gold Coast hotel in foreclosure proceedings.
The founder of Morningstar is paying $54 million for the luxury property at 11 E. Walton Street, according to Crain’s. The seller is Walton Street Capital.
The total debt on the luxury hotel amounts to about $90 million, Crain’s reported. A Walton Street debt fund took control of the hotel from Chicago hotelier Laurence Geller and Wanxiang America Real Estate Group in September 2019. Walton Street had been a junior lender on the $112 million acquisition loan Geller and Wanxiang secured in 2015 for the purchase.
The deal with Mansueto for the 60-story hotel will wipe out Walton’s equity in the building plus about 20 percent of the $67 million loan that Wells Fargo originated for the 2015 purchase, according to the report. Wells will also provide the debt for Mansueto’s acquisition; Lodging Capital Partners is a minority investor in the venture.
Among his holdings, Mansueto owns the Wrigley Building — which he acquired for $255 million in 2018 — along with the 297-unit Belden-Stratford apartments, which he bought for $106 million the same year.
Recent appraisals have slashed hotel values, including the Palmer House Hilton and the 610-room JW Marriott, according to Crain’s. [Crain’s] — Orion Jones